Swiss Re has agreed to purchase 1.1 million life insurance policies from UK insurer Legal & General Group (L&G) for £650 million ($873.6 million).

These policies will be managed by ReAssure, Swiss Re’s closed book life consolidator within the Swiss Re Life Capital business.
This move is consistent with Swiss Re’s strategy to acquire closed life books in the UK. The policies – which include with-profit, unit-linked and savings products – will be transferred to ReAssure from Legal & General Assurance Society Ltd., which is part of the L&G Group.

As a result of this transaction, ReAssure Group will administer an additional 1.1 million policies, bringing the total number of owned or administered policies to approximately 4.7 million, while increasing ReAssure assets under management including investments for unit-linked and with-profit business by £33 billion ($44.4 billion) to approximately £77 billion ($103.5 billion).

“We are delighted to have been able to acquire another attractive portfolio in the UK closed book market,” said Thierry Léger, CEO of Life Capital. “This is an excellent fit with our strategy to grow ReAssure in order to create value for shareholders. Swiss Re remains committed to diversify its portfolio by accessing life and health risk pools via alternative channels, and ReAssure provides an excellent platform for growth.”

The transaction is subject to regulatory approval.